Retirement Relief


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Retirement Relief

A capital gains tax cut formerly given in the United Kingdom to persons over 50 who sold their assets related to business.
References in periodicals archive ?
Retirement relief, if you qualify, exempts the first pounds 50K of any gain and 50 per cent of the next pounds 150K (pounds 125K in total).
Like retirement relief, entrepreneur's relief is extended to the gain on a disposal of any associated asset if that disposal is undertaken at the same time as a sale of shares in the business itself.
If you decide to run it as holiday-letting business, hold over relief, retirement relief and roll-over relief for capital gains tax should be available.
Consider realising gains on assets which might qualify for retirement relief before April 5 2003, when it will finally be abolished.
Up to April 5, Retirement Relief exempts pounds 100,000 of gain, so if the value of your goodwill is less than pounds 100,000, you should sell as soon as possible.
Apart from the obvious danger about a business falling, the Budget this year has made a large dent in the future rewards of selling a business by the phasing out of Retirement Relief.
The proposal to ease the burden on company owners by introducing a retirement relief band of around pounds 100,000 has been met with a hollow laugh," he noted.
Remember that 2002/03 is the last year for claiming capital gains tax retirement relief on the disposal of qualifying capital assets.
The announcement that retirement relief on capital gains is to be abolished in 2003 threatens some business owners with an added tax burden.
There have been suggestions that he could try to placate business by introducing changes for rules on retirement relief or those for small businesses.
Business owners over 50 years old can claim retirement relief which gives them the first pounds 250,000 tax-free.
Since the Pre Budget Report, there have been indications that we can expect to see the re-introduction of some form of retirement relief possibly exempting gains of up to pounds 100,000"
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